Tips for Buying Auto Insurance

Car ownership is a big responsibility. Not only do you need to worry about making your auto loan payments every month, but you also need to make sure that you purchase auto insurance to protect yourself and others while you are on the road.

All 50 states require by law that drivers carry some amount of auto insurance coverage. However, how do you know how much is enough? And how can you get the best deal?

In your quest to find auto insurance coverage that is right for you, there are some basic steps you can take to ensure that you purchase just the right policy.

Finding an Affordable Auto Insurance Rate

To get the best deal you can on auto insurance rates, it is recommended that you to shop around. By collecting as many auto insurance rate quotes as possible, you can compare them to find the best policy to fit your financial needs.

Another way to find an affordable auto insurance policy is by checking out why types of discounts are offered by the insurance companies you are considering. Today, there are a number of discounts that can help make one's auto insurance premiums much more affordable. Here are some of the most common auto insurance discounts available:

• Multiple Policy Discount: If you a own a home or have other insurance policies, you often can save significant dollars by combining your auto insurance policy and your other insurance policies with the same insurance company.
• Safe Driver Discount: Most drivers are aware that having moving violations will cause one's auto insurance premiums to increase. However, many insurance companies will offer discounts to drivers with clean driving records as well.
• Low-Mileage Discount: When you obtain auto insurance, chances are you will need to report the approximate number of miles you drive in a year. Drivers who drive less than 10,000 miles per year often can get a discount from their insurance provider.
• Defensive Driving Discount: Some insurance companies offer discounts on auto insurance premiums to policy holders who complete approved defensive driving courses.
• Anti-Theft/Safety Device Discount: Policy holders often can receive discounts on their auto insurance premiums if their vehicles include anti-theft devices, such as an alarm or special tracking system like Lo-Jack. Certain safety features, such as airbags and anti-lock brakes, also can result in auto insurance discounts.

Options for Auto Insurance Coverage

When choosing how much auto insurance coverage is right for you, you will need to select coverage for several insurance options:

• Bodily Injury Coverage: This coverage protects the policy holder from legal claims made by other injured drivers if the policy holder is found to be at fault for an accident.
• Liability Coverage: This coverage provides financial protection if the policy holder damages any property in an accident.
• Collision Coverage: This coverage takes care of the costs associated with damage to the policy holder's vehicle that is caused by a parked car or other stationary object.
• Comprehensive Coverage: This coverage takes care of costs associated with damage caused by non-vehicular incidents, such as fire, theft or vandalism.
• Uninsured or Underinsured Motorist Coverage: This coverage provides financial protection if the policy holder is in an accident that is caused by a driver with little or no insurance.

Almost every state requires drivers to carry a minimum amount of auto insurance liability coverage. In Alaska, state minimum coverage is 50/100/25, meaning that drivers must carry $50,000 for bodily injury for one person, with a maximum of $100,000 for all injured persons, and $25,000 for property damage.